You Are Considering Testing a New Drug That Is Supposed

question 56

Multiple Choice

You are considering testing a new drug that is supposed to facilitate learning in mentally retarded children. Because there is relatively little known about the drug, you plan to use a nondirectional alternative hypothesis. Since your resources are limited, you can test only 20 subjects. The subjects will be run in a repeated measures design and the data will be analyzed with the sign test, using a = 0.05_{2 tail}. What is the power this time?

• A) 0.4163
• B) 0.2969
• C) 0.6161
• D) 0.2458

---

Definitions:

Output

In economics, the amount of goods or services produced by a business, industry, or economy.

Marginal Cost Curve

A graph that shows the cost of producing one more unit of a good or service at any given level of production.

Average Total Cost (ATC)

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicating the average expense per unit of output.

Total Cost

The aggregate cost of all resources used in the production of a good or service, including both fixed and variable costs.